Crypto Now Legal In Russia - Although With Restrictions

[BTC Future 3946]

RIA Novosti (Ria.ru), a major online news agency, reported yesterday that the president of the Russian Federation, Vladimir Putin, has signed a bill concerning the regulation of cryptocurrencies in the country.

 

The new law on cryptocurrencies prohibits the use of cryptocurrencies as a means of payments inside Russia starting from 2021.

Still, it will allow trading and owning cryptocurrencies and recognizes them as digital assets, giving Cryptocurrencies a legal status.

 

All Russian financial entities as Banks and Exchanges will be able to conduct trading of cryptocurrencies although they will be required to apply for these activities in the Russian Central Bank registry. The law recognizes ownership of cryptocurrencies, but only if these crypto have been declared by the owner. Courts will be able to rule concerning transactions only in the case these cryptocurrencies have been declared by their owner.

 

The law does not cover mining in Russia, which is something still under discussion and will be determined following a new law that is expected to be proposed during this Autumn.

 

While this law is promising as it recognized the legal status of cryptocurrencies as assets, still the ban as a method of payments is a major drawback.

 

Source:

https://ria.ru/20200731/1575229960.html

https://cryptopotato.com/putin-outlaws-crypto-as-a-payment-means-in-russia/

 

[MuhammadSh 3067]

What a great news! i think that this would really affect positively on this cryptocurrencies world and it would push it forward! we can see cryptocurrencies are getting more and more popular each day! 
I really appreciate your efforts by sharing useful posts with us my friend! and i want to ask you about your opinion as an expert in this crypto world..

Would we see some new banks allow using cryptocurrencies in their transactions in the near future or not!? and what about the first word countries? would we see them ok with using cryptocurrencies too or not?

[Whited35 15285]

The Central Bank of Russia has already stated that cryptocurrencies are neither guaranteed nor provided by the Bank of Russia.News sounds good but I have so many questions in my head now, if cryptocurrency can not be used as a payment method for good or services, are they more concerned to protect  the primacy of the Rubble in Russia? At least, Russia based cryptocurrency exchange sites will be operating their services, Russian can still HODL, invest or trade cryptocurrency but if they want to purchase goods or services outside Russia by using cryptocurrencies, they are still allowed to do so or not? 

[BTC Future 3946]

3 hours ago, Whited35 said:

if they want to purchase goods or services outside Russia by using cryptocurrencies, they are still allowed to do so or not? 

Interesting question. From what I read I would have guessed that it is not possible. They clearly banned the use of crypto as a form of money. Still, how can they stop someone from buying with crypto and the goods from getting delivered to the designated location. 

[kyoukage01 3181]

13 hours ago, BTC Future said:

The new law on cryptocurrencies prohibits the use of cryptocurrencies as a means of payments inside Russia starting from 2021.

Still, it will allow trading and owning cryptocurrencies and recognizes them as digital assets, giving Cryptocurrencies a legal status.

If the new law allows for freely trading crypto into their local currency and vice versa, then an indirect use of crypto for payment purposes can still be made: just convert crypto into cash if you want to pay. @Whited35's previous question can also be thus answered by above as a workaround method, convert crypto into ruble or other fiat and there shouldn't be any problems. Otherwise, if this approach isn't even allowed, then despite crypto now being given legal status, use of them for payment transactions will definitely get stalled.

 

14 hours ago, BTC Future said:

All Russian financial entities as Banks and Exchanges will be able to conduct trading of cryptocurrencies although they will be required to apply for these activities in the Russian Central Bank registry. The law recognizes ownership of cryptocurrencies, but only if these crypto have been declared by the owner. Courts will be able to rule concerning transactions only in the case these cryptocurrencies have been declared by their owner.

Large hodlers can say goodbye to their anonymity with this. Well, providing crypto with a legal status deserves to have a cost in privacy if only to prove that the crypto an individual or group have obtained them through legit means and that those obtained illegally within their borders will be easier to trace.

 

[koussai999 1986]

Regulating the work of cryptocurrencies at the present time is one of the most important events that affect the cryptocurrencies, especially when those laws are in the interest of cryptocurrencies and regulate their work and legalize cryptocurrencies through countries that issue laws regulating the work of cryptocurrencies

[BTC Future 3946]

16 hours ago, kyoukage01 said:

just convert crypto into cash if you want to pay.

Certainly, but there are places that only accept certain cryptocurrencies and their market is growing year to year. These markets only deal with Bitcoin and Monero. Perhaps the lawmakers had this in mind.

[DiamondBit 720]

We wish crypto to be legal in Russia but there are still issue about it, some organizations are waging war against crypto in order for Russian government to ban it bit they are not succeeding. But now, I think any matter related to crypto, Russian government is not concerned. 

[kyoukage01 3181]

6 hours ago, BTC Future said:

Certainly, but there are places that only accept certain cryptocurrencies and their market is growing year to year. These markets only deal with Bitcoin and Monero. Perhaps the lawmakers had this in mind.

There's only a few available? Hmm... but we should be expecting faster growth in this sector, as the new law presents new business opportunities now that it is declared as legal. Maybe we will be seeing increased trading volumes between fiat and crypto at exchanges such as Yobit, among others.

 

And come to think of it, the ban on crypto as a direct means of payment might actually be a smart move for the Russian government. As this quote also pointed out:

On 8/1/2020 at 10:26 PM, Whited35 said:

are they more concerned to protect  the primacy of the Rubble in Russia?

Crypto users are thus forced to make use of fiat for indirect transactions like I said on the previous post, and this will allow their own fiat currency to still have their uses in the crypto world. If not, then the citizens might end up using crypto exclusively, to the detriment of the ruble and their overall economy. Makes sense, considering that the rest of the world does not currently have the same stance on crypto like them. Maybe one day the restriction on direct trading will be lifted once the majority of countries also declare crypto as legal. But now might not be a good time.

 

[Honny143 13612]

 Russian government take positive action and crypto legalized in their country, Its really good news for Russian citizens now they use crypto legally,yobit exchange also continue work without any restriction, now so many countries thinking positive its really great achievement for crypto.

[Moaz 7239]

I think that this is good news for users of cryptocurrencies in Russia because after the issuance of this law trading and possession of cryptocurrencies has become legal and this is a positive thing despite that the law banning the use of cryptocurrencies as a means of payment but with the passage of time this matter will be bypassed

[BTC Future 3946]

19 hours ago, Moaz said:

I think that this is good news for users of cryptocurrencies in Russia

It is a positive steps in terms that crypto are now a recognized asset. In cases of fraud or theft the authorities will be able to take certain action as until now crypto had no legal status in the country and there has been a case when thieves were arrested and weren't accused by the court for theft of Bitcoins from a civilian.

[Guru2050 8284]

It's another great achievement for Crypto currencies community and Russians, gradually crypto is expanding reaching different places across the world. Soon Crypto shall suppress the fiat currency as they can buy and sell using Crypto coins.

[gourav789 2834]

this is another good news coming from Russia , after India approved Crypto in their region. now Memeber belonging from Russia Easily used crypto for trading without any restrictions hopefully Crypto is accepted worldwide in future .

[khan22 3478]

This is the great news that in Russia the crypto is legal and i hope that soon in the other countries crypto is going to be legal and we make good profit in the market. Crypto market is the best market in the world and through this we can change our life completely in short time.

[BTC Future 3946]

35 minutes ago, SilverF said:

it is clever in a certain way they are legal and at the same time not.

Using cryptocurrencies won't be legal. This will allow the courts in Russia to decide over illegal transactions. Still it make crypto just speculative assets. It is controversial law, but at least a first step. I'm not sure about what the effects will be.

[Raqeebzy 6456]

I don't know but this doesn't sounds like a much good news to me. Allowing trading is quite good, no doubt but restricting it as a mode of payment is like taking one step forward and two backwards. It means Russians can buy, sell and hold it as an asset for profit making only; it isn't good step for its global adoption if you ask me.

[Abdul41x 0]

I commend the president for introducing this system in his country but the only draw back was that crypto currency can not be used as a means of payment though they knew the reason why it was not accepted as a means of payment nevertheless crypto currency is still moving forward accross the globe.

 

[BTC Future 3946]

On 8/17/2020 at 7:09 AM, ndadukun12 said:

It crypto are allowed only for exchanges then that is a good development but being able to pay for anything using Bitcoin is also our dream so we hope that Bitcoin would be legalized for usage everywhere.

I think that eventually this will be allowed as well. There is the problem of the darknet markets currently and a possibility of corruption so perhaps it may be considered a first step.

 

I hope this will be revised in the future and everyone allowed to use Bitcoin as a method of purchasing, as we also have the Lightning Network closer to development.

[P A Ashif 2409]

It's a very good news for all the Russian peoples out there and all the Crypto related peoples. I am saying this because Russia is one of the impactful country in the world. With this decision other countries will be motivated to bring Crypto in their country. Let's hope in future every country will accept Crypto

[BraveHeart01 1569]

So they have done so, the restrictions just to track the currency, the currency that is based on the concept of untraceable,  I don'tthink it will work best in that way.

[BTC Future 3946]

On 8/18/2020 at 7:18 PM, mehad said:

I think that there is no confirmed news yet regarding the adoption of cryptocurrencies in the banks of the state of Russia, and I hope that this news is confirmed until these currencies are recognized by some countries, and we will see the best of them from other countries.

If you read the links I've given it is confirmed news. A Russian bank has already given a loan with crypto as collateral (waves). I've written a post about that on this link.

[Ridam 7455]

This is good news for the trader and Crypto lovers. But prohibiting Crypto for digital payments is not a good law as it limits the use of Crypto Currency. I'm sure Putin is worried about that Crypto payments may affect the Ruble adversely so they may have taken this bill accepted. 

[CryptoDemon 370]

On 8/1/2020 at 6:31 PM, BTC Future said:

RIA Novosti (Ria.ru), a major online news agency, reported yesterday that the president of the Russian Federation, Vladimir Putin, has signed a bill concerning the regulation of cryptocurrencies in the country.

 

The new law on cryptocurrencies prohibits the use of cryptocurrencies as a means of payments inside Russia starting from 2021.

Still, it will allow trading and owning cryptocurrencies and recognizes them as digital assets, giving Cryptocurrencies a legal status.

 

All Russian financial entities as Banks and Exchanges will be able to conduct trading of cryptocurrencies although they will be required to apply for these activities in the Russian Central Bank registry. The law recognizes ownership of cryptocurrencies, but only if these crypto have been declared by the owner. Courts will be able to rule concerning transactions only in the case these cryptocurrencies have been declared by their owner.

 

The law does not cover mining in Russia, which is something still under discussion and will be determined following a new law that is expected to be proposed during this Autumn.

 

While this law is promising as it recognized the legal status of cryptocurrencies as assets, still the ban as a method of payments is a major drawback.

 

Source:

https://ria.ru/20200731/1575229960.html

https://cryptopotato.com/putin-outlaws-crypto-as-a-payment-means-in-russia/

 

With the action of Russia, their financial system improvement is now secured because crypto currency can improve any country's financial system. I hope that there are other countries that will legalize crypto currency too.

[khan22 3478]

Russian peoples are the luckiest person becasue they now legally use the crypto market and they easily sell and buy the coins now. I hope in all over the world crypto soon be legal and that time the crypto market make a great bull.